The average person doesn't have access to an ACH console though, and most banks & credit unions offer local transfers only, with "Bill Pay" that is just them mailing checks out for you. ACH is essentially for businesses only currently.
Most (if not all) of the major banks and some credit unions have joined Zele (formerly clearXchange) [1] to handle person-to-person transfers. Only since the rebrand has it been obvious that each banks person-to-person service is part of a multi-bank network, but I've been using it to pay my landlady since I moved into my house last May (money is transferred instantly, so there's no worry about timing a check with bill pay's slowness - and she never gets a piece of paper with my account information on it either).
It's taken forever, but I'm hopeful with the big banks getting onboard Zele for person-to-person payments we may see something similar to the push-based systems other countries have for making everyday transactions online someday.
How does Zelle compare to Venmo on things like fraud protection and customer service? (I imagine simply not being owned by PayPal is a real good start.)
A "proper" setup integrates Zelle directly with your bank, aside from clicking the "Send money with Zelle" button being the only hint a third-party is involved the transaction is initiated and settled directly within your banks online account management system. When done this way your bank of choice takes responsibility for fraud and customer service, with the Zelle network silently working behind the scenes to match email/mobile numbers up with destination accounts.
If you don't have a participating bank, things get a little more annoying since you can still use the service on its own by registering an account and tying your checking account to it - then the classic 3rd-party intermediary problem comes in. On that note though, Zelle is owned by big banks, Bank of America, Capital One, JPMorgan Chase, Wells Fargo, etc., so even as sleazy as the banks are I have a lot more faith in them not screwing it up (they don't like fraud, and they want you to keep your money with them - even as greedy as they are).
In all honesty, it's probably the best setup we have for Person-to-Person transfers in the US - as more banks and credit unions adopt it you'll hopefully just open the app for your bank of choice on your phone and initiate a payment, no third party trying to take a cut, you call the bank you (hopefully) already trust for support, and as a result you remove one more account tied to your banking information that can be compromised to steal your money.
Venmo has basically no protections, its much sketchier than PayPal. If the person who sent you money wants to reverse the transaction, there is nothing stopping them if its a person to person transaction.
Unsure on how Venmo works, but I can explain Zelle / clearXchange some. (I've done this a lot on HN; it's nice to see someone else taking up the mantle on this thread!)
With Zelle, everything is done through your participating bank. So customer service is managed through your bank, and fraud is probably the same way.
You register with Zelle through your bank, which means your bank associates your email and / or phone number with your account within the Zelle system. After being associated, other people with a participating bank can send you money using that email or phone number. The money is instantly deducted from the sender's account, and is typically in the receiver's account within minutes or hours. Since you can only initiate payments through Zelle and not withdraws, fraud is likely managed the same as wires or bill pay.
A few years back I was able to configure payments for my Citizens' Bank credit card from a non-Citizens' checking account without any verification. Needless to say I was livid and contacted their customer service, who were basically like "yup that's how it works".
(I closed my account with them soon thereafter. Citizens' is awful for other reasons.)
